Media ININ Economy We Trust
Media In / Amman 6 May 2018
The government contribution management company announced on Sunday that it has opened the way to the shareholders of Royal Jordanian Airlines, which were included in the Cabinet Decision No. 9361 of April 29, 2015, whereby the government committed to buy the shareholders’ shares that they had purchased directly from the government in 2007 at a price of 3.80 Dinars, and still retain ownership to submit their applications in this regard.
The Ministry of Finance said in a statement that the purchase will be made at the price of 1.8 dinars, as stipulated in the resolution.
In its announcement to the shareholders included in the resolution published on the website of the Ministry of Finance and the Royal Jordanian Website, the Government Contribution Management Company said that the door will be open for them to express their desire to sell their shares from today until the end of the day on Thursday May 17th, The offices of the Government Contribution Management Company shall be provided by the shareholder in person or by his assignees during the said period.
As the share of the government and the share of the Social Security Corporation in 2015 did not allow the required majority of shareholders to take a decision to structure the capital of the Royal Jordanian Company, other shareholders had to be encouraged to approve and approve the capital restructuring, Arrow.
The ministry said that the important step was the decisive and positive role in the company’s march and avoidance of compulsory liquidation. It reflected the government’s keenness on preserving the national carrier of Jordan and stressing the importance of ensuring its continued functioning in an effective manner. , Maintaining treasury funds and social security funds as they are major contributors to the company.
The decision includes about 12,000 of the 17,000 shareholders in the Royal Jordanian Company, where Mentrade Trading Middle East and the Social Security Corporation are the largest shareholders covered by this decision.
The decision to improve the financial and operational performance of the company, which recently announced the success of the plan to shift to profitability, which implemented since last year and continue for five years, recorded a net profit in 2017 amounted to 460 thousand dinars before tax compared to a loss in 2016 amounted to 24.6 million dinars.
The company’s first-quarter financial results also reflected a significant shift forward in the company’s sustainable earnings drive.
The decision reinforces the competitive position of Royal Jordanian regionally and globally, and enables it to continue to play its strategic role in connecting Jordan to the world and preserving its employees and the structure of the Jordanian air transport sector in general.
It is noteworthy that Royal Jordanian had disclosed on the Amman Stock Exchange about this government decision when it was adopted in 2015.
